At a Glance

Forbes Lists

Profile

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data. Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits. The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2002 Argentine financial crisis. In early 2014, the government embraced a series of more orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took measures to mend ties with the international financial community, including: engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and presenting a proposal to pay its arrears to the Paris Club. More »

More on Forbes

It has been a long time since Arsenal fans have approached a season with such high hopes. A settled squad – so far goalkeeper Petr Cech is only significant signing – well balanced and with a number of options at each position…..except one. read »

Am I “Non-Willful”? Taxpayers pursuing resolution of a foreign account issue within the Streamlined Procedures are required to certify, under penalties of perjury, that their conduct was “non-willful.” For purposes of the streamlined procedures, non-willful conduct is defined as conduct that is “due to negligence, inadvertence, or mistake or read »

It has finally happened. A powerful group of leaders in international finance, the Group of Thirty, (G30) called last week for far-reaching banking reforms to restore public trust. It opened the door to dismissal if necessary of top executives in the banking sector, new approaches to hiring and stronger roles by boards of directors “to ensure read »

Anything can be marketed – especially political candidates. As the political season starts ramping up, we are witnessing the beginning of what is sure to be a fast-paced, rapid-fire, marketing competition play out. Day-by-day, almost any candidate can be on top of the leader board with polling numbers shifting drastically. Imagine marketing a read »

When Dan Price announced that he was raising the minimum salary in his company to $70,000, it made a lot of headlines. The story of the founder and CEO of the Seattle-based credit card processor Gravity Payments drastically cutting his own salary in order to raise the standard of living of even his lowest paid employees was written about just read »

With Michel Platini, French footballing legend and boss of UEFA (Union of European Football Associations), hotly priced at 8/13 by online bookmaker Betway Group to become the next President of FIFA, the sports global governing body, the sports betting firm currently has odds of 5/1 that the World Cup will expand from 32 teams to 40 – one of read »

In that deflating moment when the star employee you painstakingly mentored tells you that despite much admiration and gratitude she’s leaving for something better, it’s easy to react emotionally and to blame others—those disloyal millennials, can’t believe the competition poaches like that—but you can only reduce turnover in the future read »

For the past couple of years, while everyone has been watching Vladimir Putin’s moves in Eastern Europe, China has been making increasing economic inroads on Russia’s periphery. Its economic dominance of Moscow’s traditional backyard, Central Asia, is well known, but less well known is its growing presence in other areas of Russia’s periphery, read »

We’re still incredibly far away from the sixth season of Game of Thrones, but given that it’s currently starting to film, news about what comes next is beginning to leak. And today, there’s a bit of fantastic news from set that the show has brought on Deadwood alumni Ian McShane to take on an unspecified read »

Warner Bros./New Line/Time Warner Inc.’s new Vacation sequel/reboot was the only wide release daring to debut alongside Mission: Impossible Rogue Nation. The film opened on Wednesday with $3.8 million and earned another $2.5m on Thursday. As such, its $14.8m weekend brings its cume to $21.172m thus far. read »

Marketing Services Agreements (MSAs) have been part of the mortgage landscape for two decades, they are financial arrangements between compensated real estate (or real estate universe) entities and compensating mortgage lenders. The lenders pay monthly fees to the real estate entities and the real estate entities refer mortgage business to the read »